Union Bank sees 40% rise in profit at Rs 1000 cr

Despite the turmoil in the government securities market, Union Bank of India has projected a 40 per cent rise in net profit for the year ended March 2005 at Rs 1,000 crore, up from Rs 712 crore in the previous year.

The bank aims to have its net non-performing asset ratio below one per cent by the year-end, down from 2.74 per cent in the previous year.

The bank plans to raise its deposits base by 14 per cent to Rs 60,000 crore and advances by 24 per cent to Rs 40,000 crore. The bank is aiming at a total business of Rs 1 lakh crore, up from Rs 80,000 crore as on March 2004.

"We will have a mid-way correction of these figures if necessary by the end of September. On the treasury front only government security yields have gone up," said V Leeladhar, chairman and managing director, Union Bank of India.

The bank plans to implement the core banking solution, Finnacle, that will interconnect its branches across 700 branches by March 2005. Currently 304 out of the bank's 2,020 branches are technologically interconnected.

By year-end, the bank aims to deploy 250 automated teller machines along with seven other banks with which it shares its present network of 250. Union Bank of India, in association with Visa International, is entering the card business with the launch of credit and debit cards by October.

The bank aims to issue 3.5 lakh credit cards by March 2005.

Currently it has a co-branded credit card with Bank of India which it will wind up shortly.